Travelers Offers Hybrid Owners Auto Discounts
It appears lower fuel costs and tax incentives aren't the only things hybrid car owners have going for them.
If they buy insurance from St. Paul Travelers and live in one of 27 states, they're also getting a pretty hefty discount on their auto insurance, says the Insurance Journal—up to 10 percent off.
That translates into $250 to $3,400 a month, depending on the model.
In an unprecedented move, Travelers personal lines, a member of St. Paul Travelers, began offering consumers the hybrid discount last month to encourage them to purchase hybrid cars, which run on a combination of gas and electricity.
Although only 1 percent of registered vehicles on the road are presently hybrids, the company says insurance industry experts estimate that will increase to 15 percent over the next 10 years.
Offered in only 27 states now, the company says it plans to roll out the offer in other states in the coming months.
Get the whole story here.
Comments
I didn't read the full story; however, I'm wondering why St. Paul Insurance would offer a discount for hybrid cars. Do they realy care about the environment or is their another financially motivated reason (i.e. less claims history, too).
Posted by: The Sage | March 13, 2006 06:43 PM
Hi, Sage. Great question!
According to the experts, hybrid car owners and drivers tend to come from what they call a "preferred insured category." That simply means they tend to be more responsible, mature drivers who are less likely to file auto insurance claims. Auto insurance companies see them as financially stable and less likely to have accidents, which means their auto insurance rates tend to be lower than average.
So yes, from a financial perspective, the company tends to benefit from insuring these types of drivers.
As far as their stance on environmental issues, that appears less clear.
Thanks for asking!
Posted by: Penny Hagerman | March 13, 2006 10:04 PM